Global pharmaceutical company Eli Lilly (NYSE: LLY) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 37.6% year on year to $15.56 billion. The company’s full-year revenue guidance of $61 billion at the midpoint came in 1.4% above analysts’ estimates. Its non-GAAP profit of $6.31 per share was 12.9% above analysts’ consensus estimates.

Is now the time to buy LLY? Find out in our full research report (it’s free).

StockStory’s Take

Eli Lilly delivered above-consensus results in the second quarter, surpassing Wall Street’s revenue and non-GAAP profit expectations, yet the market response was notably negative. Management attributed the year-on-year growth to ongoing strength from key products such as Mounjaro and Zepbound, with robust demand in both diabetes and obesity markets. CEO David A. Ricks highlighted the positive clinical data from the ATTAIN-1 orforglipron trial and strong uptake of new products, but acknowledged headwinds tied to U.S. drug pricing reforms, competitive pressures, and changes in pharmacy benefit manager coverage. Ricks also pointed to continued investment in research and development and manufacturing expansion as central to supporting future growth.

Looking ahead, Eli Lilly’s updated guidance is driven by anticipated contributions from its expanding obesity and diabetes portfolios, increased manufacturing capacity, and the upcoming regulatory submissions for new therapies such as orforglipron. Management expects ongoing launches and broader international reach for Mounjaro, as well as further adoption of Zepbound in new channels. CFO Lucas E. Montarce noted that “the potential effect of tariffs remains dynamic,” and the company is factoring in only a modest impact for 2025. Leadership also flagged ongoing negotiations regarding U.S. drug pricing, evolving coverage for anti-obesity medications, and the significance of upcoming clinical trial readouts as important variables for the remainder of the year.

Key Insights from Management’s Remarks

Management credited the quarter’s performance primarily to strong volume growth in incretin-based therapies and recent clinical and regulatory milestones across multiple therapeutic areas.

• Incretin therapies drive growth: Management highlighted robust volume gains for Mounjaro and Zepbound, with Mounjaro now the U.S. market leader in type 2 diabetes incretin prescriptions and Zepbound maintaining the top branded share in the U.S. anti-obesity market. International launches of Mounjaro, including in Mexico and Brazil, contributed to growth but were paced to align with available supply.
• Clinical pipeline progress: The company reported positive Phase III results from the ATTAIN-1 orforglipron obesity trial and the SURPASS-CVOT cardiovascular outcomes study for tirzepatide. These data support regulatory submissions and potential new indications, expanding the addressable patient population for Eli Lilly’s portfolio.
• Manufacturing expansion: Eli Lilly increased production of salable incretin doses by over 1.6 times year-over-year, supported by new facilities such as Research Triangle Park. Leadership stated plans to further expand U.S. manufacturing capacity and announce two additional facility locations in the coming months.
• Coverage and channel developments: The company faced disruptions from CVS pharmacy benefit manager removing Zepbound from its template formulary, which negatively impacted prescription growth in July. Management also underscored the growing role of direct-to-consumer channels like LillyDirect for bridging gaps in employer and insurance coverage.
• M&A and pipeline additions: The acquisitions of SiteOne Therapeutics and Verve Therapeutics added a non-opioid pain candidate and one-time genetic medicines for cardiovascular disease, broadening the company’s late-stage pipeline and supporting diversification into new therapeutic areas.

Drivers of Future Performance

Eli Lilly’s near-term outlook hinges on sustained demand for its obesity and diabetes treatments, expansion of manufacturing, and evolving payer coverage for its key drugs.

• Obesity and diabetes franchise expansion: Management expects continued uptake of Mounjaro and Zepbound, with international launches and potential new clinical indications for tirzepatide and orforglipron underpinning growth. However, leadership highlighted headwinds from changes in U.S. pharmacy benefit manager coverage and upcoming competition from generics, which could impact channel dynamics and pricing.
• Pipeline execution and regulatory milestones: Upcoming clinical trial results—especially from additional orforglipron studies and new indications for existing drugs—will be critical to maintaining momentum. The company plans to submit multiple regulatory filings before year-end and is investing in R&D for new disease areas, including pain and metabolic liver disease.
• Manufacturing and supply chain scaling: Eli Lilly is focused on further expanding its manufacturing footprint to meet rising global demand for incretin therapies. Management projects at least 1.8 times more salable incretin doses in the second half of the year compared to the prior year, positioning the company to support broader patient access and new product launches.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will focus on (1) the pace of regulatory submissions and readouts for orforglipron and other late-stage pipeline assets, (2) the continued expansion of manufacturing capacity and its effectiveness in meeting global demand, and (3) the evolving coverage landscape for anti-obesity drugs, particularly how employer and pharmacy benefit manager decisions affect prescription growth. Additional attention will be paid to developments in pricing negotiations and the company’s ability to navigate new competitive threats.

Eli Lilly currently trades at $637.99, down from $747.24 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

Stocks That Trumped Tariffs

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.